The European Parliament has formally adopted a directive to amend the Accounting Directive 2013/34/EU. Multinationals and their subsidiaries with annual revenues over €750m, and which are active in more than one EU country, will now have to publish the amount of tax they pay in each member state. This information will also need to be made publicly available on the internet, using a common template and in a machine-readable format. The obligation applies to all EU and non-EU multinationals that exceed the turnover threshold. UK groups will therefore need to consider the detail carefully. Banking groups that are already obliged to provide public country by country reporting under article 89 of Directive 2013/36/EU will be exempted from the new obligation to avoid double reporting.
The directive will enter into force 20 days after publication in the Official Journal. Member states will have 18 months to transpose the law. The first financial year of reporting for businesses will be the year starting on or after two years and six months following entry into force of the directive – in practical terms, from the middle of 2024.
The European Parliament has formally adopted a directive to amend the Accounting Directive 2013/34/EU. Multinationals and their subsidiaries with annual revenues over €750m, and which are active in more than one EU country, will now have to publish the amount of tax they pay in each member state. This information will also need to be made publicly available on the internet, using a common template and in a machine-readable format. The obligation applies to all EU and non-EU multinationals that exceed the turnover threshold. UK groups will therefore need to consider the detail carefully. Banking groups that are already obliged to provide public country by country reporting under article 89 of Directive 2013/36/EU will be exempted from the new obligation to avoid double reporting.
The directive will enter into force 20 days after publication in the Official Journal. Member states will have 18 months to transpose the law. The first financial year of reporting for businesses will be the year starting on or after two years and six months following entry into force of the directive – in practical terms, from the middle of 2024.
